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Name

"Hong Kong" in English and Chinese branded as "Asia's World City".

The name "Hong Kong" is an approximate phonetic rendering of the pronunciation of the spoken Cantonese or Hakka name 香港, meaning "Fragrant Harbour".[31] Before 1842, the name referred to a small inlet—now Aberdeen Harbour (香港仔hoeng1gong2 zai2, or Hiong1gong3zai3[9] in Hong Kong Hakka, literally means "Little Hong Kong")—between Aberdeen Island and the south side of Hong Kong Island, which was one of the first points of contact between British sailors and local fishermen.[32]

The reference to fragrance may refer to the sweet taste of the harbour's fresh water estuarine influx of the Pearl River, or to the incense from factories, lining the coast to the north of Kowloon, which was stored near Aberdeen Harbour for export before the development of the Victoria Harbour.[31]

In 1842, the Treaty of Nanking was signed and the name, Hong Kong, was first recorded on official documents to encompass the entirety of the island.[33]

The full official name, after 1997, is "Hong Kong Special Administrative Region of the People's Republic of China". This is the official title as mentioned in the Hong Kong Basic Law and the Hong Kong Government's website;[35] however, "Hong Kong Special Administrative Region" and "Hong Kong" are widely accepted.

Hong Kong has carried many nicknames: the most famous among those is the "Pearl of the Orient", which reflected the impressive night-view of the city's light decorations on the skyscrapers along both sides of the Victoria Harbour. The territory is also known as "Asia's World City".

Imperial China

Started from Jin dynasty to early period of Tang dynasty, the territory that now comprises Hong Kong was governed by Bao'an County (寶安縣). In Tang dynasty, the Guangdong region flourished as an international trading center. The Tuen Mun region in what is now Hong Kong's New Territories served as a port, naval base, salt production centre and later, base for the exploitation of pearls. Lantau Island was also a salt production centre, where the salt smugglers riots broke out against the government.

The earliest European visitor on record was Jorge Álvares, a Portuguese explorer who arrived in 1513.[50][51] Having founded an establishment in Macau by 1557, Portuguese merchants began trading in southern China. However, subsequent military clashes between China and Portugal led to the expulsion of all Portuguese merchants from the rest of China.

In the mid-16th century, the Haijin order (closed-door, isolation policy) was enforced and it strictly forbade all maritime activities in order to prevent contact from foreigners by sea.[49] From 1661 to 1669, Hong Kong was directly affected by the Great Clearance of the Kangxi Emperor, who required the evacuation of coastal areas of Guangdong. About 16,000 people from Hong Kong and Bao'an County were forced to emigrate inland; only 1,648 of those who evacuated were said to have returned after the evacuation was rescinded in 1669.[52][53]

British Crown Colony: 1842-1941

In 1839, the refusal of Qing authorities to support opium imports caused the outbreak of the First Opium War between the British Empire and the Qing Empire. Qing's defeat resulted in the occupation of Hong Kong Island by British forces on 20 January 1841. It was initially ceded under the Convention of Chuenpee, as part of a ceasefire agreement between Captain Charles Elliot and Governor Qishan. While a dispute between high-ranking officials of both countries led to the failure of the treaty's ratification, on 29 August 1842, Hong Kong Island was formally ceded in perpetuity to the United Kingdom of Great Britain and Ireland under the Treaty of Nanking.[54] The British officially established a Crown colony and founded the City of Victoria in the following year.[55]

The population of Hong Kong Island was 7,450 when the Union Flag raised over Possession Point on 26 January 1841. It mostly consisted of Tanka fishermen and Hakkacharcoal burners, whose settlements scattered along several coastal hamlets. In the 1850s, a large number of Chinese immigrants crossed the then-free border to escape from the Taiping Rebellion. Other natural disasters, such as flooding, typhoons and famine in mainland China would play a role in establishing Hong Kong as a place for safe shelter.[56][57]

Hong Kong soon became a major entrepôt thanks to its free port status, attracting new immigrants to settle from both China and Europe alike. The society, however, remained racially segregated and polarised under British colonial policies. Despite the rise of a British-educated Chinese upper-class by the late-19th century, race laws such as the Peak Reservation Ordinance prevented ethnic Chinese in Hong Kong from acquiring houses in reserved areas, such as the Victoria Peak. At this time, the majority of the Chinese population in Hong Kong had no political representation in the British colonial government. There were, however, a small number of Chinese elites whom the British governors relied on, such as Sir Kai Ho and Robert Hotung, who served as communicators and mediators between the government and local population.

Hong Kong continued to experience modest growth during the first half of the 20th century. The University of Hong Kong was established in 1911 as the territory's oldest higher education institute. While there was an exodus of 60,000 residents for fear of a German attack on the British colony during the First World War, Hong Kong remained peaceful. Its population increased from 530,000 in 1916 to 725,000 in 1925 and reached 1.6 million by 1941.[61]

During the Japanese occupation of Hong Kong, the Japanese army committed atrocities against civilians and POWs, such as the St. Stephen's College massacre. Local residents also suffered widespread food shortages, limited rationing and hyper-inflation arising from the forced exchange of currency from Hong Kong Dollars to Japanese military banknotes. The initial ratio of 2:1 was gradually devalued to 4:1 and ownership of Hong Kong Dollars was declared illegal and punishable by harsh torture. Due to starvation, mass executions, and forced deportation for slave labour to mainland China, the population of Hong Kong had dwindled from 1.6 million in 1941 to 600,000 in 1945, when Britain resumed control of the colony on 30 August 1945.[65]

Resumption of British rule and Industrialisation: 1945-97

Hong Kong's population recovered quickly after the war, as a wave of skilled migrants from China flooded in for refuge from the Chinese Civil War. When the Communists gained control of mainland China in 1949, even more skilled migrants fled across the open border for fear of persecution.[58] Many newcomers, especially those who had been based in the major port cities of Shanghai and Guangzhou, established corporations and small- to medium-sized businesses and shifted their base operations to British Hong Kong.[58] The Chinese Communist Party's establishment of a socialist state in China on 1 October 1949 caused the British colonial government to reconsider Hong Kong's open border to mainland China. In 1951, a boundary zone was demarked as a buffer zone against potential military attacks from communist China. Border posts in the north of Hong Kong began operation in 1953 to regulate the movement of people and goods into and out of British Hong Kong.

In the 1950s, Hong Kong became the first of the Four Asian Tiger economies under rapid industrialisation driven by textile exports, manufacturing industries and re-exports of goods to China. As the population grew, with labour costs remaining low, living standards began to rise steadily.[66] The construction of the Shek Kip Mei Estate in 1953 marked the beginning of the public housing estate programme to provide shelter for the less privileged and to cope with the influx of immigrants.

Under Sir Murray MacLehose, 25th Governor of Hong Kong (1971–82), a series of reforms improved the public services, environment, housing, welfare, education and infrastructure of Hong Kong. MacLehose was British Hong Kong's longest-serving governor and, by the end of his tenure, had become one of the most popular and well-known figures in the Crown Colony. MacLehose laid the foundation for Hong Kong to establish itself as a key global city in the 1980s and early 1990s.

To resolve traffic congestion and to provide a more reliable means of crossing the Victoria Harbour, a rapid transit railway system (metro), the MTR, was planned from the 1970s onwards. The Island Line (Hong Kong Island), Kwun Tong Line (Kowloon Peninsula and East Kowloon) and Tsuen Wan Line (Kowloon and urban New Territories) opened in the early 1980s.[67]

Hong Kong's competitiveness in manufacturing gradually declined due to rising labour and property costs, as well as new development in southern China under the Open Door Policy introduced in 1978 which opened up China to foreign business. Nevertheless, towards the early 1990s, Hong Kong had established itself as a global financial centre along with London and New York, a regional hub for logistics and freight, one of the fastest-growing economies in Asia and the world's exemplar of Laissez-faire market policy.[68]

The Hong Kong question

Facing the uncertain future of Hong Kong, Governor MacLehose raised the question in the late 1970s. In 1983, the United Kingdom reclassifed Hong Kong as a British Dependent Territory (now British Overseas Territory) when reorganising global territories of the British Empire. Talks and negotiations began with China and concluded with the 1984 Sino-British Joint Declaration. Both countries agreed to transfer Hong Kong's sovereignty to the People's Republic of China on 1 July 1997, when Hong Kong would remain autonomous as a Special Administrative Region and be able to retain its free-market economy, British common law through the Hong Kong Basic Law, independent representation in international organisations (e.g. WTO and WHO), treaty arrangements and policy-making except foreign diplomacy and military defence.[58] It stipulated that Hong Kong would retain its laws and be guaranteed a high degree of autonomy for at least 50 years after the transfer. The Hong Kong Basic Law, based on English law, would serve as the constitutional document after the transfer. It was ratified in 1990.[58] Nevertheless, the expiry of the 1898 lease on the New Territories in 1997 created problems for business contracts, property leases and confidence among foreign investors.

Handover and Hong Kong SAR

Transfer of sovereignty

On 1 July 1997, the transfer of sovereignty of Hong Kong from the United Kingdom to the People's Republic of China took place, officially marking the end of Hong Kong's 156 years under British colonial governance. As the last Crown Colony of the United Kingdom, the loss of Hong Kong also represented the end of the British Empire. At the same time, Hong Kong switched its country of administration overnight to become China's first Special Administrative Region. Tung Chee-Hwa, a pro-Beijing business tycoon, was elected Hong Kong's first Chief Executive by a selected electorate of 800 in a televised ceremony.

Transition to Chinese rule

Soon after Hong Kong's reversion to China, the city suffered an economic double-blow from the Asian financial crisis and the pandemic of H5N1 bird flu; in December 1997, officials had to destroy 1.4 million chickens and ducks to contain the virus from spreading.[58] Subsequently, mismanagement of Tung's housing policy disrupted the market supply, sent properties prices in Hong Kong tumbling and caused many homeowners to become bankrupt due to negative equity. In 2003, Hong Kong was gravely affected by the outbreak of severe acute respiratory syndrome (SARS).[69][70] The World Health Organization reported 1,755 infected and 299 deaths in Hong Kong.[71] An estimated 380 million Hong Kong dollars (US$48.9 million) in contracts were lost as a result of the epidemic.[72]

Distrust of the Communist Party of China remained strong in the initial years of Chinese rule. A legacy of the democratic reforms by Lord Chris Patten, China refused to recognise the legitimacy of the Legislative Council of Hong Kong after its 1994 direct election. The "Provisional" Legislative Council of Hong Kong (1997–99), which was unable to draft any new bills or authorise new legislation, completed its five-year term in 1999. The Legislative Council of Hong Kong (LegCo) resumed its full function after the 1999 LegCo election.

Despite the unopposed re-election of Tung in July 2002, the government's attempt to complete legislation of the Basic Law's Article 23 (National Security) aroused strong suspicion among Hong Kong citizens. This was due to the Article granting the police force right of access to private property, under the reason of 'safeguarding national security', without court warrants. Coupled with years of economic hardships and deflation following the Asian Financial Crisis, a mass demonstration broke out on 1 July 2003. This hastened the resignations of two government ministers and, eventually, that of Tung on 10 March 2005.[73]

Tensions with mainland China

Since Hong Kong's reunification with China, there has been increasing social tension between Hong Kong residents and mainland Chinese due to cultural and linguistic differences, as well as accusations of unruly behaviour and spending habits of mainland Chinese visitors to the territory.[76] A 2011 survey (with a sample base of 541) in Hong Kong shows that 17% respondents considered themselves as "Chinese citizens", while 38% considered themselves just "Hong Kong citizens".[77]

In 2012 Chief Executive elections saw the Beijing backed candidate Leung Chun-Ying elected with 689 votes from a committee panel of 1,200 selected representatives, and assumed office on 1 July 2012.

Social conflicts also influenced the mass protests in 2014, primarily caused by the Chinese government's proposal on electoral reform. The debates over China's vision of granting Hong Kong full democracy have escalated into diplomatic rows between China and the United Kingdom.[78]

Governance

Opened in 1912, this granite neo-classical building in Central used to house the Supreme Court. It became the home to Legislative Council of Hong Kong (dubbed "Legco") from 1985 to 2011, spanning across the British and the Chinese rule. However, as the Legco has moved to a new complex in 2011, the building will revert to a judicial function, housing the Court of Final Appeal from 2015 onwards.

Hong Kong enjoys a high degree of autonomy, as its political and judicial systems operate independently from those of mainland China. In accordance with the Sino-British Joint Declaration, and the underlying principle of one country, two systems, Hong Kong has a "high degree of autonomy as a special administrative region in all areas except defence and foreign affairs".[note 2] The declaration stipulates that the region maintain its capitalist economic system and guarantees the rights and freedoms of its people for at least 50 years after the 1997 handover.[note 3] The guarantees over the territory's autonomy and the individual rights and freedoms are enshrined in the Hong Kong Basic Law, the territory's constitutional document, which outlines the system of governance of the Hong Kong Special Administrative Region, but which is subject to the interpretation of the Standing Committee of the National People's Congress (NPCSC).[79][80]

The implementation of the Basic Law, including how and when the universal suffrage promised therein is to be achieved, has been a major issue of political debate since the transfer of sovereignty. In 2002, the government's proposed anti-subversion bill pursuant to Article 23 of the Basic Law, which required the enactment of laws prohibiting acts of treason and subversion against the Chinese government, was met with fierce opposition, and eventually shelved.[88][89][90] Debate between pro-Beijing groups, which tend to support the Executive branch, and the Pan-democracy camp characterises Hong Kong's political scene, with the latter supporting a faster pace of democratisation, and the principle of one man, one vote.[91]

In 2004 the government failed to gain pan-democrat support to pass its so-called "district council model" for political reform.[92] In 2009, the government reissued the proposals as the "Consultation Document on the Methods for Selecting the Chief Executive and for Forming the LegCo in 2012". The document proposed the enlargement of the Election Committee, Hong Kong's electoral college, from 800 members to 1,200 in 2012 and expansion of the legislature from 60 to 70 seats. The ten new legislative seats would consist of five geographical constituency seats and five functional constituency seats, to be voted in by elected district council members from among themselves.[93] The proposals were destined for rejection by pan-democrats once again, but a significant breakthrough occurred after the Central Government in Beijing accepted a counter-proposal by the Democratic Party. In particular, the Pan-democracy camp was split when the proposal to directly elect five newly created functional seats was not acceptable to two constituent parties. The Democratic Party sided with the government for the first time since the handover and passed the proposals with a vote of 46–12.[94]

On 31 August 2014, China disapproved a full democracy in Hong Kong by ruling that only three candidates could run for elections as leader in 2017, and they would be chosen by a nomination committee.[95]

Hong Kong's legal system is completely independent from the legal system of mainland China. In contrast to mainland China's civil law system, Hong Kong continues to follow the English Common Law tradition established under British rule.[96] The essence of English common law is that it is made by judges sitting in courts, applying legal precedent (stare decisis) to the facts before them. For example, murder is a common law crime rather than one established by an Act of Parliament. Common law can be amended or repealed by Parliament; murder, for example, now carries a mandatory life sentence rather than the death penalty. According to Article 92[dead link] of the Basic Law, Hong Kong's courts may refer to decisions rendered by courts of other common law jurisdictions as precedents,[13][97] and judges from other common law jurisdictions, most commonly England, Canada and Australia, are allowed to sit as non-permanent judges of the Court of Final Appeal.[13][97]

Structurally, the court system consists of the Court of Final Appeal, the High Court, which is made up of the Court of Appeal and the Court of First Instance, and the District Court, which includes the Family Court.[98] Other adjudicative bodies include the Lands Tribunal, the Magistrates' Courts, the Juvenile Court, the Coroner's Court, the Labour Tribunal, the Small Claims Tribunal, and the Obscene Articles Tribunal.[98] Justices of the Court of Final Appeal are appointed by Hong Kong's Chief Executive.[13][97] The Court of Final Appeal has the power of final adjudication with respect to the law of Hong Kong as well as the power of final interpretation over local laws including the power to strike down local ordinances on the grounds of inconsistency with the Basic Law.[99][100]

The Department of Justice is responsible for handling legal matters for the government. Its responsibilities include providing legal advice, criminal prosecution, civil representation, legal and policy drafting and reform, and international legal co-operation between different jurisdictions.[96] Apart from prosecuting criminal cases, lawyers of the Department of Justice act on behalf of the government in all civil and administrative lawsuits against the government.[96] As protector of the public interest, the department may apply for judicial reviews and may intervene in any cases involving the greater public interest.[101] The Basic Law protects the Department of Justice from any interference by the government when exercising its control over criminal prosecution.[102][103]

Foreign relations

Hong Kong continues to play an active role in the international arena and maintains close contact with its international partners. Under the Basic Law, Hong Kong is exclusively in charge of its external relations, whilst the Government of the People's Republic of China is responsible for its foreign affairs. According to the Basic Law, Hong Kong may on its own, using the name "Hong Kong, China", maintain and develop relations and conclude and implement agreements with foreign states and regions and relevant international organisations in the appropriate fields, including the economic, trade, financial and monetary, shipping, communications, tourism, cultural and sports fields.[104]

There is a large foreign representation in Hong Kong, including 59 consulates-general, 62 consulates and 5 officially recognised international bodies, such as Office of European Union.[105] Due to Hong Kong's unique status, some countries' consulates-general operate independently of their embassies in Beijing, the Chinese capital. For example, the US Consulate General to Hong Kong is not under the jurisdiction of the Embassy in Beijing, and reports directly to the US Department of State. The British Consulate-General also reports directly to the Foreign Office, instead of going through the British Embassy in Beijing.[106]

Human rights

The Hong Kong government generally respects the human rights of its citizens, although core issues remain,[107] including the lack of universal suffrage, restrictions on freedom of the press and freedom of assembly, sex trafficking and discrimination against women, and forced labour. 200,000 migrant workers cannot make complaints against their employers since they face deportation if dismissed from their jobs; a 2008 law against racial discrimination does not cover mainlanders, immigrants or migrant workers.[108] The police have been accused of using heavy-handed tactics toward protesters in public rallies,[109] and there is controversy regarding the extensive powers of the police.[110] Covert surveillance is another major concern.[111]

A lack of protection for LGBT communities persists, due to the absence of a sexual orientation anti-discrimination legislation, though there are currently no existent laws that criminalise homosexuality per se.[112]

Labour rights, such as maximum working hours, is another area that requires debate and legislation.[107]

Regions and Districts

Hong Kong consists of three regions: Hong Kong Island, Kowloon, and the New Territories. The regions are subdivided into 18 geographic districts, each represented by a district council which advises the government on local matters such as public facilities, community programmes, cultural activities, and environmental improvements.[114]

There are a total of 541 district council seats, 412 of which are elected; the rest are appointed by the Chief Executive and 27 ex officio chairmen of rural committees.[114] The Home Affairs Department communicates government policies and plans to the public through the district offices.[115] Hong Kong has a unitary system of government; no local government has existed since the two municipal councils were abolished in 2000. As such there is no formal definition for its cities and towns.

The Basic Law of Hong Kong protects local civil affairs against any interference by the garrison; members of the garrison are subject to Hong Kong laws. The Hong Kong Government remains responsible for the maintenance of public order; however, it may ask the PRC government for assistance from the garrison in maintaining public order and in disaster relief. The PRC government is now responsible for the costs of maintaining the garrison.[88][116]

In January 2015, Hong Kong Army Cadets Association was formed for Hong Kong children over 6 years old. The inauguration ceremony was held at a PLA naval base in Hong Kong; only pro-Beijing press was invited into the venue.[117]

Geography and climate

Areas of urban development and vegetation are visible in this false-colour satellite image.

Hong Kong is located on China's south coast, 60 km (37 mi) east of Macau on the opposite side of the Pearl River Delta. It is surrounded by the South China Sea on the east, south, and west, and borders the Guangdong city of Shenzhen to the north over the Shenzhen River. The territory's 1,104 km2 (426 sq mi) area consists of Hong Kong Island, the Kowloon Peninsula, the New Territories, and over 200 offshore islands, of which the largest is Lantau Island. Of the total area, 1,054 km2 (407 sq mi) is land and 50 km2 (19 sq mi) is inland water. Hong Kong claims territorial waters to a distance of 3 nautical miles (5.6 km). Its land area makes Hong Kong the 179th largest inhabited territory in the world.[3][10] In comparison to North American cities, Hong Kong is tiny yet heavily populated. An example could be the city Edmonton, with a metro population of about 1.4 Million, making the city considerably smaller in population than Hongkong's 7.4 Million. However, Edmonton's metro area totals nearly 10,000 km2 (3,900 sq mi) making the city almost ten times larger than Hong kong. Also, The Greater Los Angeles area is over 87,000 km2 (34,000 sq mi), and with 18 million residents, has an incredibly low density when compared to Hong Kong and is 79 times larger in area.

Higher-altitude areas of Hong Kong are often dominated by grassland: Lantau Island during the dry season.

As much of Hong Kong's terrain is hilly to mountainous with steep slopes, less than 25% of the territory's landmass is developed, and about 40% of the remaining land area is reserved as country parks and nature reserves.[118] Low altitude vegetation in Hong Kong is dominated by secondaryrainforests, as the primary forest was mostly cleared during the Second World War, and higher altitudes are dominated by grasslands. Most of the territory's urban development exists on Kowloon peninsula, along the northern edge of Hong Kong Island, and in scattered settlements throughout the New Territories.[119] The highest elevation in the territory is at Tai Mo Shan, 957 metres (3,140 ft) above sea level.[120] Hong Kong's long and irregular coast provides it with many bays, rivers and beaches.[121] On 18 September 2011, UNESCO listed the Hong Kong National Geopark as part of its Global Geoparks Network. Hong Kong Geopark is made up of eight Geo-Areas distributed across the Sai Kung Volcanic Rock Region and Northeast New Territories Sedimentary Rock Region.[122]

Despite Hong Kong's reputation of being intensely urbanised, the territory has tried to promote a green environment,[123] and recent growing public concern has prompted the severe restriction of further land reclamation from Victoria Harbour.[124] Awareness of the environment is growing as Hong Kong suffers from increasing pollution compounded by its geography and tall buildings. Approximately 80% of the city's smog originates from other parts of the Pearl River Delta.[125]

Though it is situated just south of the Tropic of Cancer, Hong Kong has a humid subtropical climate (KöppenCwa). Summer is hot and humid with occasional showers and thunderstorms, and warm air coming from the southwest. Summer is when typhoons are most likely, sometimes resulting in flooding or landslides. Winters are mild and usually start sunny, becoming cloudier towards February; the occasional cold front brings strong, cooling winds from the north. The most temperate seasons are spring, which can be changeable, and autumn, which is generally sunny and dry.[126] Hong Kong averages 1,948 hours of sunshine per year,[127] while the highest and lowest ever recorded temperatures at the Hong Kong Observatory are 36.3 and 0.0 °C (97.3 and 32.0 °F), respectively.[128][129]

The Hong Kong Stock Exchange is the seventh largest in the world and has a market capitalisation of US$2.3 trillion as of December 2009.[139] In that year, Hong Kong raised 22 percent of worldwide initial public offering (IPO) capital, making it the largest centre of IPOs in the world [140] and the easiest place to raise capital. The Hong Kong dollar has been pegged to the US dollar since 1983.[141]

The Hong Kong Government has traditionally played a mostly passive role in the economy, with little by way of industrial policy and almost no import or export controls. Market forces and the private sector were allowed to determine practical development. Under the official policy of "positive non-interventionism", Hong Kong is often cited as an example of laissez-faire capitalism. Following the Second World War, Hong Kong industrialised rapidly as a manufacturing centre driven by exports, and then underwent a rapid transition to a service-based economy in the 1980s.[142] Since then, it has grown to become a leading centre for management, financial, IT, business consultation and professional services.

Hong Kong matured to become a financial centre in the 1990s, but was greatly affected by the Asian financial crisis in 1998, and again in 2003 by the SARS outbreak. A revival of external and domestic demand has led to a strong recovery, as cost decreases strengthened the competitiveness of Hong Kong exports and a long deflationary period ended.[143][144] Government intervention, initiated by the later colonial governments and continued since 1997, has steadily increased, with the introduction of export credit guarantees, a compulsory pension scheme, a minimum wage, anti-discrimination laws, and a state mortgage backer.[131]

The territory has little arable land and few natural resources, so it imports most of its food and raw materials. Imports account for more than 90% of Hong Kong's food supply, including nearly all of the meat and rice available there.[145] Agricultural activity—relatively unimportant to Hong Kong's economy and contributing just 0.1% of its GDP—primarily consists of growing premium food and flower varieties. Hong Kong is the world's eleventh largest trading entity,[146] with the total value of imports and exports exceeding its gross domestic product. It is the world's largest re-export centre.[147] Much of Hong Kong's exports consist of re-exports,[148] which are products made outside of the territory, especially in mainland China, and distributed via Hong Kong. Its physical location has allowed the city to establish a transportation and logistics infrastructure that includes the world's second busiest container port and the world's busiest airport for international cargo. Even before the transfer of sovereignty, Hong Kong had established extensive trade and investment ties with the mainland, which now enable it to serve as a point of entry for investment flowing into the mainland. At the end of 2007, there were 3.46 million people employed full-time, with the unemployment rate averaging 4.1% for the fourth straight year of decline.[149] Hong Kong's economy is dominated by the service sector, which accounts for over 90% of its GDP, while industry constitutes 9%. Inflation was at 2.5% in 2007.[150] Hong Kong's largest export markets are mainland China, the United States, and Japan.[3]

Hong Kong's transportation network is highly developed. Over 90% of daily travels (11 million) are on public transport,[24] the highest such percentage in the world.[25] Payment can be made using the Octopus card, a stored value system introduced by the Mass Transit Railway (MTR), which is widely accepted on railways, buses and ferries, and accepted like cash at other outlets.[155][156]

The city's main railway company (KCRC) was merged with MTR in 2007, creating a comprehensive rail network for the whole territory (also called MTR).[157] The MTR rapid transit system has 152 stations which serve 3.4 million people a day.[158]Hong Kong Tramways, which has served the territory since 1904, covers the northern parts of Hong Kong Island.[159]

Hong Kong's bus service is franchised and run by private operators.[why?] Five privately owned companies provide franchised bus service across the territory, together operating more than 700 routes. The largest are Kowloon Motor Bus, providing 402 routes in Kowloon and New Territories, and Citybus, operating 154 routes on Hong Kong Island; both run cross-harbour services. Double-decker buses were introduced to Hong Kong in 1949, and are now almost exclusively used; single-decker buses remain in use for routes with lower demand or roads with lower load capacity. Public light buses serve most parts of Hong Kong, particularly areas where standard bus lines cannot reach or do not reach as frequently, quickly, or directly.[160]

The Star Ferry service, founded in 1888, operates two lines across Victoria Harbour and provides scenic views of Hong Kong's skyline for its 53,000 daily passengers.[161] It acquired iconic status following its use as a setting on The World of Suzie Wong. Travel writer Ryan Levitt considered the main Tsim Sha Tsui to Central route one of the most picturesque in the world.[162] Other ferry services are provided by operators serving outlying islands, new towns, Macau, and cities in mainland China. Hong Kong is famous for its junks traversing the harbour, and small kai-to ferries that serve remote coastal settlements.[163][164] The Port of Hong Kong is a busy deepwater port, specialising in container shipping.[165]

Residents from mainland China do not have the right of abode in Hong Kong, nor are they allowed to enter the territory freely.[89] However, the influx of immigrants from mainland China, approximating 45,000 per year, is a significant contributor to its population growth – a daily quota of 150 Mainland Chinese with family ties in Hong Kong are granted a "one way permit".[177] Life expectancy in Hong Kong is 79.16 years for males and 84.79 years for females as of 2009, making it the highest life expectancy in the world.[3]

Hong Kong's de facto official language is Cantonese, a variety of Chinese originating from Guangdong province to the north of Hong Kong.[180] English is also an official language, and according to a 1996 by-census is spoken by 3.1 percent of the population as an everyday language and by 34.9 percent of the population as a second language.[181] Signs displaying both Chinese and English are common throughout the territory. Since the 1997 Handover, an increase in immigrants from communist China and greater interaction with the mainland's economy have brought an increasing number of Mandarin speakers to Hong Kong.[182]

A majority of residents of Hong Kong would claim no religious affiliation, professing a form of agnosticism or atheism.[183] According to the US Department of State only 43 percent of the population practices some form of religion.[184] Some figures put it higher, according to a Gallup poll, 64% of Hong Kong residents do not believe in any religion,[185][186] and possibly 80% of Hong Kong claim no religion.[187] In Hong Kong teaching evolution won out in curriculum dispute about whether to teach other explanations, and that creationism and intelligent design will form no part of the senior secondary biology curriculum.[188][189]

Statistically Hong Kong's income gap is the greatest in Asia Pacific. According to a report by the United Nations Human Settlements Programme in 2008, Hong Kong's Gini coefficient, at 0.53, was the highest in Asia and "relatively high by international standards".[195][196] However, the government has stressed that income disparity does not equate to worsening of the poverty situation, and that the Gini coefficient is not strictly comparable between regions. The government has named economic restructuring, changes in household sizes, and the increase of high-income jobs as factors that have skewed the Gini coefficient.[197][198]

Education

Hong Kong's education system used to roughly follow the system in England,[199] although international systems exist. The government maintains a policy of "mother tongue instruction" (Chinese: 母語教學) in which the medium of instruction is Cantonese,[200] with written Chinese and English, while some of the schools are using English as the teaching language. In secondary schools, 'biliterate and trilingual' proficiency is emphasised, and Mandarin-language education has been increasing.[201] The Programme for International Student Assessment ranked Hong Kong's education system as the second best in the world.[202]

Most comprehensive schools in Hong Kong fall under three categories: the rarer public schools; the more common subsidised schools, including government aids-and-grant schools; and private schools, often run by Christian organisations and having admissions based on academic merit rather than on financial resources. Outside this system are the schools under the Direct Subsidy Scheme and private international schools.[205]

There are eight public and one private universities in Hong Kong, the oldest being the University of Hong Kong (HKU), established in 1910–1912.[207] The Chinese University of Hong Kong was founded in 1963 to fulfill the need for a university with a medium of instruction of Chinese.[208] Competition among students to receive an offer for an undergraduate programme is fierce as the annual number of intakes is limited, especially when some disciplines are offered by only select tertiary institutions, like medicine which is provided by merely two medical schools in the territory, the Li Ka Shing Faculty of Medicine at the University of Hong Kong and the Faculty of Medicine of the Chinese University of Hong Kong. In addition to the public post-secondary institutions there are also a number of private higher institutions which offer higher diplomas and associate degree courses for those who fail to enter a college for a degree study so as to boost their qualification of education, some of whom can have a second chance of getting into a university if they have a good performance in these sub-degree courses.[209][210]

Health

There are 13 private hospitals and more than 40 public hospitals in Hong Kong.[211] There is little interaction between public and private healthcare.[212] The hospitals offer a wide range of healthcare services, and some of the territory's private hospitals are considered to be world class.[213] According to UN estimates, Hong Kong has one of the longest life expectancies of any country or territory in the world.[29] As of 2012, Hong Kong women are the longest living demographic group in the world.[30]

There are two medical schools in the territory, one based at the Chinese University of Hong Kong and the other at the University of Hong Kong.[214][215] Both have links with public sector hospitals.[214][216] With respect to postgraduate education, traditionally many doctors in Hong Kong have looked overseas for further training, and many took British Royal College exams such as the MRCP(UK) and the MRCS(UK). However, Hong Kong has been developing its own postgraduate medical institutions, in particular the Hong Kong Academy of Medicine, and this is gradually taking over the responsibility for all postgraduate medical training in the territory.

Since 2011, there have been growing concerns that mothers-to-be from mainland China, in a bid to obtain the right of abode in Hong Kong and the benefits that come with it, have saturated the neonatal wards of the city's hospitals both public and private. This has led to protest from local pregnant women for the government to remedy the issue, as they have found difficulty in securing a bed space for giving birth and routine check-ups. Other concerns in the decade of 2001–2010 relate to the workload medical staff experience; and medical errors and mishaps, which are frequently highlighted in local news.[217]

Hong Kong is frequently described as a place where "East meets West", reflecting the culture's mix of the territory's Chinese roots with influences from its time as a British colony.[218] Concepts like feng shui are taken very seriously, with expensive construction projects often hiring expert consultants, and are often believed to make or break a business.[219] Other objects like Ba gua mirrors are still regularly used to deflect evil spirits,[220] and buildings often lack any floor number that has a 4 in it,[221] due to its similarity to the word for "die" in Cantonese.[222] The fusion of east and west also characterises Hong Kong's cuisine, where dim sum, hot pot, and fast food restaurants coexist with haute cuisine.[223]

Hong Kong offers wide recreational and competitive sport opportunities despite its limited land area. It sends delegates to international competitions such as the Olympic Games and Asian Games, and played host to the equestrian events during the 2008 Summer Olympics.[231] There are major multipurpose venues like Hong Kong Coliseum and MacPherson Stadium. Hong Kong's steep terrain and extensive trail network with expansive views attracts hikers, and its rugged coastline provides many beaches for swimming.[232]

Sport

The Hong Kong Sevens is considered the premier tournament on the IRB Sevens World Series rugby sevens competition and is held annually in Hong Kong on a weekend in late March.

Sports in Hong Kong are a significant part of its culture. Due mainly to British influence going as far back as the late 19th century, Hong Kong had an earlier introduction to Western athletics compared to other Asia regions. Football, basketball, swimming, badminton, table tennis, cycling and running have the most participants and spectators. In 2009, Hong Kong successfully organised the V East Asian Games. Other major international sporting events including the Equestrian at the 2008 Summer Olympics, Hong Kong Sevens, Hong Kong Marathon, AFC Asian Cup, EAFF East Asian Cup, Hong Kong Tennis Classic, Premier League Asia Trophy, and Lunar New Year Cup are also held in the territory. As of 2010, there were 32 Hong Kong athletes from seven sports ranking in world's Top 20, 29 athletes in six sports in Asia top 10 ranking. Moreover, Hong Kong athletes with disabilities are equally impressive in their performance as of 2009, having won four world championships and two Asian Championships.[233]

Architecture

According to Emporis, there are 1,223 skyscrapers in Hong Kong, which puts the city at the top of world rankings.[234] It has more buildings taller than 500 feet (150 m) than any other city. The high density and tall skyline of Hong Kong's urban area is due to a lack of available sprawl space, with the average distance from the harbour front to the steep hills of Hong Kong Island at 1.3 km (0.81 mi),[235] much of it reclaimed land. This lack of space causes demand for dense, high-rise offices and housing. Thirty-six of the world's 100 tallest residential buildings are in Hong Kong.[236] More people in Hong Kong live or work above the 14th floor than anywhere else on Earth, making it the world's most vertical city.[22][23]

There are many development plans in place, including the construction of new government buildings,[246] waterfront redevelopment in Central,[247] and a series of projects in West Kowloon.[248] More high-rise development is set to take place on the other side of Victoria Harbour in Kowloon, as the 1998 closure of the nearby Kai Tak Airport lifted strict height restrictions.[249] The Urban Renewal Authority is highly active in demolishing older areas, including the razing and redevelopment of Kwun Tong town centre, an approach which has been criticised for its impact on the cultural identity of the city and on lower-income residents.

A view from Victoria Peak, looking north over Central, Victoria Harbour and Kowloon (2011).

A view from Victoria Peak, looking north over Central, Victoria Harbour and Kowloon at night (2007).

^Section 3(2) of the Sino-British Joint Declaration states in part: "The Hong Kong Special Administrative Region will enjoy a high degree of autonomy, except in foreign and defence affairs which, are the responsibilities of the Central People's Government."

^Section 3(5) of the Sino-British Joint Declaration states that the social and economic systems and lifestyle in Hong Kong will remain unchanged, and mentions rights and freedoms ensured by law. Section 3(12) states in part: "The above-stated basic policies of the People's Republic of China ... will remain unchanged for 50 years."

^The results of the 2006 census showed that the "white" population had declined from 46,584 in 2001 to 36,384, a decline of 22 percent.[178]

^Madden, Frederick (2000). The End of Empire: Dependencies since 1948. Part 1: The West Indies, British Honduras, Hong Kong, Fiji, Cyprus, Gibraltar, and the Falklands. Volume VIII: Select Documents on the Constitutional History of the British Empire and Commonwealth. Greenwood Publishing. pp. 188–196. ISBN978-0-313-29072-5.

^"A history of refugees in Hong Kong". Time Out Hong Kong. 18 June 2013. Retrieved 9 September 2013. The first wave of refugees came to Hong Kong in the 1930s to escape from the Chinese Civil War and the Sino-Japanese War, but it wasn't until 1949, during the Chinese exodus, when an estimated one million-plus mainland Chinese started coming into the territory via the northern borders. Many people, mostly anti-communist Kuomintang officials and capitalists, rushed to Hong Kong in search of refuge.

^Lonely Planet Hong Kong (10th ed.). Lonely Planet. 2002. p. 16. ISBN1864502304. The turmoil on the mainland, leading to the defeat of the Nationalists and takeover by the Communists in 1949, unleashed a torrent of refugees – both rich and poor -into Hong Kong.